Next.Direct Conference – US bank targets pink dollar
America’s first gay and lesbian Internet bank opens its doors on May 31, expecting to attract 66,000 customers and assets of US$1 billion within five years.
Steve Dunlap, founder of the G&L Internet Bank and a speaker at the recent next.direct 99 conference in Sydney, says: "We currently have over 5,000 customers just waiting for a simple e-mail to let them know that the bank is ready to go."
He says there are between 14 to 25 million gay and lesbian consumers in the US, many of whom have had a hard time obtaining finance because traditional banks do not understand their needs.
According to a study by Simmons Market Research in 1997, the annual purchasing power of this affinity group is US$700 billion.
The study of 4,000 gay respondents also found that 58 per cent held management positions and 48 per cent were college educated. In addition, 61.8 per cent owned a personal computer and 28 per cent had personal income of over US$50,000.
Dunlap says the gay and lesbian community has been quick to adopt the Internet. Studies show that they subscribe to on-line services and bank on-line at higher rates than the mainstream population.
He says one reason is that Internet banking is seen to deliver a level of anonymity not available from other distribution channels.
G&L Bank, which starts with a capital base of US$25 million, plans to offer banking, investment, insurance products and two credit cards. One card will be branded while the other will be blank with a non-descript issue for those who do not want to advertise their sexual orientation.
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
